Qwest Posts Q3 Revenue of $3.1 Billion, See Improving Trends

Qwest Communications reported total operating revenue of $3.1 billion in the third quarter. Strategic services revenue of $1.1 billion increased by 5 percent year over year and 1 percent sequentially reflecting higher demand for IP services. Legacy services revenue of $1.7 billion decreased 14 percent annually and 3 percent sequentially. Fewer access lines, from a weak economy and competition, and efforts to improve Wholesale long-distance profitability pressured legacy voice revenue. Customer transitions to IP services impacted legacy data revenue.

Net income was $136 million. Earnings per share were 8 cents, which was equal to prior-year results.

“Our focus on perfecting the customer experience while maintaining strong financial discipline again enabled us to deliver solid results in the quarter.” said Edward A. Mueller, Qwest chairman and CEO. “The ability of the Qwest team to steer through difficult market conditions has been exemplary. This is evident in key measures of our performance including strategic revenue growth, reduced operating expenses, stable EBITDA, strong free cash flow and an improving leverage ratio. As a result of our stronger-than-expected performance to date, we are raising our full year 2009 free cash flow outlook. We are optimistic about our prospects as the economy begins to improve in the quarters ahead.”http://www.qwest.com